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Every year, Spain attracts thousandds of foreign investors, entrepreneurs and foreign companies that want to start doing business in the Spanish and even European Market. Many factors make Spain such a popular market for these purposes, such as strategic Eu location, qualified workforce and growing economy. However, in order to ensure success on the landing project, it is important to follow professional advice to avoid get stuck in bureaucracy, lose months, and waste money on mistakes that could have been avoided. If you’re looking to set up a company in Spain as a foreigner, here’s exactly what you need to know.
Quick answer: yes, foreigners can set up a company in Spain. The most common structure is the Sociedad Limitada (SL), similar to an LLC. You’ll need a NIE (foreigner identification number), a minimum capital of €3,000, and the process typically takes 2-4 weeks if you have all documents ready.
You don’t need to be a Spanish resident to own a company. You don’t even need to visit Spain in person for most of the process. Below we explain every step, the real costs, and common pitfalls to avoid.
What you need before you start
Before incorporating your Spanish company, gather these essential documents:
- NIE (Número de Identificación de Extranjero): this is your tax ID in Spain. EU citizens can get it at a police station. Non-EU citizens need to apply at the Spanish consulate in their home country.
- Valid passport: apostilled and translated if required
- Proof of address: for the company’s registered office in Spain
- Minimum share capital: €3,000 for an SL, deposited in a Spanish bank
Pro tip: getting the NIE is usually the slowest step. Start this process first while preparing other documents.
Step-by-step process to register your company
- Get your NIE (1-4 weeks depending on your country)
- Reserve your company name at the Central Mercantile Registry (Registro Mercantil Central). This takes 2-3 days and costs around €15.
- Open a bank account and deposit the share capital. The bank will issue a certificate confirming the deposit.
- Draft the articles of incorporation (estatutos sociales). A lawyer or advisor can prepare these for you.
- Sign before a notary (escritura pública). This creates the official deed of incorporation. Cost: €300-600.
- Register at the Mercantile Registry (Registro Mercantil provincial). Takes 1-2 weeks. Cost: €150-300.
- Get your CIF (tax identification number) at the tax office
- Register for economic activity (IAE) and VAT if applicable
Real costs to expect
Here’s a realistic budget for setting up a standard SL:
- Share capital: €3,000 (this stays in your company, it’s not a fee)
- Notary fees: €300-600
- Mercantile Registry: €150-300
- Name reservation: €15
- Legal/advisory fees: €500-1,500 (optional but recommended)
Total: expect to spend €4,000-5,500 to have your company ready to operate, including the share capital.
How long does it take?
If you already have your NIE and all your documents ready, the actual company formation can happen surprisingly fast. Using express services available in Madrid and Barcelona, some firms can get you from signed deed to registered company in as little as 48-72 hours. The standard timeline without rushing is about 2-3 weeks: a few days for name reservation, a week for the notary appointment and signing, and another week or so for the Mercantile Registry to process everything.
If you’re starting from scratch as an EU citizen, add time for getting your NIE. In major Spanish cities, NIE appointments can be booked 2-4 weeks out, and the actual appointment takes just a few hours. So realistically, you’re looking at 4-6 weeks from «I’ve decided to do this» to «my company is registered.»
If you’re a non-EU citizen, the timeline stretches further. Applying for a NIE through your local Spanish consulate can take anywhere from 2 weeks (in countries with efficient consulates and low demand) to 2 months (in places like the US, where Spanish consulates are notoriously backlogged). I’ve seen cases where the NIE alone took three months. So budget 2-4 months total if you’re coming from outside the EU and don’t already have your documentation sorted.
The bank account is the wild card that can throw off any timeline. Some entrepreneurs walk into a bank and have an account open the same day. Others spend weeks getting rejected, providing additional documentation, and waiting for compliance departments to approve their application. If you’re a non-resident from a country the bank considers «high risk» (which includes more places than you might think), this process can be especially frustrating.
Frequently asked questions
Do I need to live in Spain to own a company?
No. You can own a Spanish company while living anywhere in the world. However, you may need a local representative for tax purposes if you’re a non-EU resident.
Can I open a bank account remotely?
It’s challenging. Most traditional Spanish banks require in-person identification. Some digital banks like N26 or Revolut Business offer alternatives, but for the share capital deposit, a traditional bank is usually required.
What’s the corporate tax rate in Spain?
The standard rate is 25%. New companies pay a reduced rate of 15% during their first two profitable years.
Ready to start your Spanish company?
Setting up a company in Spain as a foreigner is absolutely doable. The process is straightforward if you have the right guidance. The key is preparing your documents in advance, especially the NIE, and working with professionals who know the system.
At Capital Auditors, we’ve helped hundreds of foreign entrepreneurs establish their businesses in Spain. As members of Integra International, we can also support you if you’re expanding from another country. Contact our team for a free initial consultation and we’ll guide you through every step.
